“Financial education

is not just for

the wealthy –
it’s for everyone.”

Temporary File
 Lesson 1:

Introduction to
Financial Literacy
The Essential 1st Step:
INCREASE CASH FLOW
MONTHLY INCOME P50,000
MONTHLY EXPENSES P55,000
CASHFLOW -P 5,000

You can Start Investing only if

You have a Positive CashFlow.
HOW TO INCREASE CASH FLOW

.
 SAVE To INVEST. Don’t Save to Spend.
SAVER MONTHLY SAVINGS TOTAL AFTER 15 TOTAL AFTER 35
YEARS @ 12% YEARS @ 12%

WATER P20 x 30 = P600 +P300K +P3.5M

P0

3-in-1 COFFEE P130 x 20 = P2,600 +P1.3M +P15.1M

P10/cup

DINE HOME P800 x 4 = P3,200 +P1.6M +P18.6M

P200

PACKED LUNCH P100 x 20 = 2,000 +P1.1M +P11.6M

P50

NO BRAND SHIRT P3,200 x 1 = 3,200

+P1.6M +P18.6M
P300
+P5.9M +P67.4M
This is for illustrative purposes only and not indicative of any investment. Past performance is no guarantee of future results.
SIMPLY SAVING IS NOT ENOUGH.
SAVE & INVEST.
Investment
What is an investment? How do you
consider something as an investment?
Types of Investments (based on Asset Classes)
1. Cash
2. Real Estate
3. Business
KNOW HOW MONEY WORKS

The RULE of 72

72 ÷ Interest Rate
= Number of
Years for your
Money to
Double
 KNOW HOW MONEY WORKS

You open a Your money

savings account doubles after
in the bank 288 years
0.25% P20,000
P10,000 Per Annum

72 ÷ 0.25 = 288 years

 KNOW HOW MONEY WORKS

GOVERNMENT SECURITIES
COMMERCIAL PAPERS
12% STOCKS AND EQUITIES 12%
RETAIL LOANS
REAL ESTATE

Depositor Shareholder

0.25% 12%
Savings Account Investment
The Philippine Stock Market
Question: Ano ang
whole name ni
Jollibee?
Note: Ice Breaker
Question: Ano ang
whole name ni
Jollibee?

Note: Ice Breaker

The Philippine Stock Market
The Current Situation
As of August 2018:

Deposit Interest Rate < 1% per annum (top commercial banks)

Inflation > 6%
 R.A. 10679

R.A. 10922
 IMPORTANCE OF BUILDING

IS YOUR HOUSE BUILT ON A HOW ABOUT YOUR

• Typhoon • Financial crisis

• Earthquake • Lost income
• Illness/Disability
• Debt/Loan
• Bankruptcy
BUILD A STRONG FINANCIAL FOUNDATION
 What is Financial Literacy?

Financial Literacy is the dynamic interaction of

Knowledge, Skills, and Discipline in managing the
money (that you earn) in order to Create, Protect, and
Preserve your wealth, through a process called:
Building a Strong Financial Foundation.

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 What is Financial Literacy?
Dynamic Interaction

Knowledge x Skills x Discipline

Stages of Wealth Building

Create  Protect  Preserve

Wealth-Building Process

Building a Strong Financial

Foundation
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 Why is it Important to Learn
about Financial Literacy?
 Because money is a limited resource – thus, it
has to be managed properly.

 Although money is not the most important thing

in life, it affects many important things in life.

 Money, without Financial Literacy, is money

soon gone.

Temporary File
 “Financial education
is not just for
the wealthy –
it’s for everyone.”

Temporary File